Red Devil

A bit of advice, please. We are to buy a property but do not intend to complete till later in the year, which suits both sides. We have been asked for a substantial deposit to ensure they don't sell it to anyone else. Is this normal practice ?? If so, does the money get held by a solicitor or third party as I would not be happy putting it into another person's bank account. Not that I am saying they are untrustworthy but who knows !!

jdr

I think what ever deposit you make, you will lose if you pull out at a later date and the seller is supposed to pay double if they pull out, but then again this is Spain, so who knows.
The way the pound is going it would be better if you bought now.

linda Coyle

We bought in November 2006 for August this year completion. We paid 3000 euro initially to reserve the plot then 8 weeks later we paid 30% to our Spanish solicitor (who held on to it for 6 months). The solicitor was recommended by the agent, and, according to the solicitor, she held on to the money as she was waiting to have everything checked out!! We have since changed our solicitor and would advise any one to get an independant solicitor. We pay the balance on completion. Hope this helps

Mitzyboy

We paid €7000 to secure the plot. Then we paid the balance in 3 equal payments at beginning of build, roof stage and when it was completed.

Red Devil

The property we are to buy is already built and I guess the owners want us to commit to buying it now even though we won't complete till later in the year. I can see why they want that committment as without it I guess we could change our mind at any time and they would have to start looking for another buyer 6 months down the line. I just worry about handing over such a large amount of money !!

Mitzyboy

How long is "later in the year"

Red Devil

Hi, about 6 or 7 months.

spain

its usual to pay a deposit and have a contract drawn up, as JDR says, that you lose the deposit if you pull out and they pay you double the deposit if they pull out

but next year is a long way off, not sure I would be keen on paying it so far in advance either, is there no way you could buy now ? and maybe rent the place to the seller ?

Red Devil

We cannot buy now. So later this year is best for us and suits them as they are moving at the same time. As they have other property they would have no need to rent. Anyway, I am also hoping the euro exchange rate improves later in the year.

mikelincs

Solicitors held our deposits in a client account, we paid €3000 up front, then 10% of the purchase price 1 month later and then the rest was paid on completion. Yes we would have lost the deposit had we pulled out, but again the sellers would have lost double had they pulled out.

Mitzyboy

That wont make a difference if you've already paid the deposit Who gets the interest?